Anonymous
Post 01/26/2024 15:35     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:I've been looking at how our small business can make some moves this year - buyout equipment leases etc - that could move our income down these years that matter for college FA for two kids.

But there's no shaking that we have 1.5 in stocks. We've maxed out retirement for 30 years, but we've had some stocks in our investment account that really took off in the last couple years so, barring a reversal, it is what it is. Our retirement accounts used to be where the bulk of our savings were, but they're about the same value now - they've been in index funds that did well but not the same crazy run up.

given that, does it even make sense to stress about getting income down? I could get it down from 250 to 150. But if it doesn't matter, I won't do this.

We already used some unsheltered assets to pay off mortgage.

so generally:
1.5mm in stocks
1.2 in retirement
1.2 in house
200k in 529 total

I know it seems like a lot but paying 90k for 8 years also seems like a lot.


You have 4M in assets. You don't need FA. If you're worried about money, lose the cocaine habit, or just put your $1.5M in some kind of high yield CEF (Pimco has a bunch), or just put it in S&P and use the returns to pay tuition. This isn't hard!
Anonymous
Post 01/26/2024 15:32     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:I've been looking at how our small business can make some moves this year - buyout equipment leases etc - that could move our income down these years that matter for college FA for two kids.

But there's no shaking that we have 1.5 in stocks. We've maxed out retirement for 30 years, but we've had some stocks in our investment account that really took off in the last couple years so, barring a reversal, it is what it is. Our retirement accounts used to be where the bulk of our savings were, but they're about the same value now - they've been in index funds that did well but not the same crazy run up.

given that, does it even make sense to stress about getting income down? I could get it down from 250 to 150. But if it doesn't matter, I won't do this.

We already used some unsheltered assets to pay off mortgage.

so generally:
1.5mm in stocks
1.2 in retirement
1.2 in house
200k in 529 total

I know it seems like a lot but paying 90k for 8 years also seems like a lot.


So you want to lie about your assets so you can take FA from people who actually really need it? Look in the mirror, please.
Anonymous
Post 01/26/2024 15:31     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Yeah, you won't get FA. I'd shift your mindset from "how do I game the system" to "How can our full pay status allow our kids to move up a tier in terms of admissions?"


putting a new roof on your house, paying down business leases, paying down mortgage. none of these things are gaming the system. they're being smart.


then do those before you have to apply for aid


I’m pretty sure you need to do these before their sophomore year.


That's just income, assets are evaluated on the day you fill out the form.
Anonymous
Post 01/26/2024 14:33     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:your home equity and retirement (which is low) are not counted.

you're on the hook for 90k total for two kids bcs of your assets.

getting income down to 150k will matter a lot. the richest schools will give you something off for second kid.

1.2 in retirement is low?


In late 50s? It’s too low to be paying 800k for college


But she has $1.5 in stocks that will pay 8 years.

If I were OP, I'd just focus on making more money (since she has a small business) and/or better invest the 529. Sure, her kids might get into Princeton, but it sounds like gambling to spend down assets to *maybe* get financial aid.


She’s saved a lot on 250k in nyc w 2 kids and stocks have gone nuts. Don’t spent that all in college. People here don’t know how to keep it (money) in their pants
Anonymous
Post 01/26/2024 14:31     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:your home equity and retirement (which is low) are not counted.

you're on the hook for 90k total for two kids bcs of your assets.

getting income down to 150k will matter a lot. the richest schools will give you something off for second kid.

1.2 in retirement is low?


She does pretty well on her investments considering she’s making 250k w two kids in nyc. Her whole point is her stock picks have gone nuts. Nvidia I assume?
In late 50s? It’s too low to be paying 800k for college


But she has $1.5 in stocks that will pay 8 years.

If I were OP, I'd just focus on making more money (since she has a small business) and/or better invest the 529. Sure, her kids might get into Princeton, but it sounds like gambling to spend down assets to *maybe* get financial aid.
Anonymous
Post 01/26/2024 14:11     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Why would you ever spend $90/year on college? That is absolutely nuts. Go with any of your state schools.
Anonymous
Post 01/26/2024 14:08     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:your home equity and retirement (which is low) are not counted.

you're on the hook for 90k total for two kids bcs of your assets.

getting income down to 150k will matter a lot. the richest schools will give you something off for second kid.

1.2 in retirement is low?


In late 50s? It’s too low to be paying 800k for college


But she has $1.5 in stocks that will pay 8 years.

If I were OP, I'd just focus on making more money (since she has a small business) and/or better invest the 529. Sure, her kids might get into Princeton, but it sounds like gambling to spend down assets to *maybe* get financial aid.
Anonymous
Post 01/26/2024 13:42     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Colleges will look at that stock and see it as theirs. They'll expect you to sell it and transfer that portion of your wealth to them. They'll be eyeing it and assuming it belongs to them, not you.

Less dramatically, go to myintuition.com and run the net price calculators for different schools that use different formulas.
Anonymous
Post 01/26/2024 13:25     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:your home equity and retirement (which is low) are not counted.

you're on the hook for 90k total for two kids bcs of your assets.

getting income down to 150k will matter a lot. the richest schools will give you something off for second kid.

Plenty of schools do count home equity.
Anonymous
Post 01/26/2024 13:22     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:Yeah, you won't get FA. I'd shift your mindset from "how do I game the system" to "How can our full pay status allow our kids to move up a tier in terms of admissions?"


or if you're not willing to pay $80K+ ,then go down a tier and search for merit. It can be had. You do not have to pay that much to get a great education.
Anonymous
Post 01/26/2024 13:21     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:Not on 250k. We live in nyc and pay 40% in taxes.

Look at SUNY Binghamton - your 529s will more than cover
Anonymous
Post 01/26/2024 12:58     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:your home equity and retirement (which is low) are not counted.

you're on the hook for 90k total for two kids bcs of your assets.

getting income down to 150k will matter a lot. the richest schools will give you something off for second kid.

1.2 in retirement is low?


Depends on your age. Good if you are in your 30s, bad if you are in your 60s.
Anonymous
Post 01/26/2024 12:54     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Yeah, you won't get FA. I'd shift your mindset from "how do I game the system" to "How can our full pay status allow our kids to move up a tier in terms of admissions?"


putting a new roof on your house, paying down business leases, paying down mortgage. none of these things are gaming the system. they're being smart.


then do those before you have to apply for aid


I’m pretty sure you need to do these before their sophomore year.
Anonymous
Post 01/26/2024 12:39     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Not on 250k. We live in nyc and pay 40% in taxes.
Anonymous
Post 01/26/2024 12:22     Subject: 1.5mm in unsheltered assets - dq'd for FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:your home equity and retirement (which is low) are not counted.

you're on the hook for 90k total for two kids bcs of your assets.

getting income down to 150k will matter a lot. the richest schools will give you something off for second kid.

1.2 in retirement is low?


In late 50s? It’s too low to be paying 800k for college

I don't think they need to touch their retirement. They have 200k 529 and can cash flow the rest with their business income.